Doughty Hanson & Co Real Estate and US-based REIT, Liberty Property Trust, have acquired Blythe Valley Park from British Land plc for up to £161 million (approx. €221 million).
Highlights:
- The premier business park in the Midlands, on 257 acres with dedicated access at Junction 4 of the M42
- 14 office buildings totalling approximately 500,000 ft² with major occupiers including Centrica, Ove Arup and Vodafone
- Permission granted in 2006 for a second phase of development totalling 800,000 ft²
- The acquisition is the second joint venture between Doughty Hanson & Co Real Estate and Liberty Property Trust, after the 535,000 ft² Kings Hill business park in Kent
- Doughty Hanson & Co European Real Estate Fund II has committed £58 million of equity to the acquisition and further development of the project. This is the third investment in the UK by Fund II. In addition to Blythe Valley Park and Kings Hill, the Fund has also invested in Howick Place, a mixed-use office and residential redevelopment in London SW1 in joint venture with Terrace Hill Group plc
- Liberty Property Trust has committed £14.5 million of equity to the acquisition and further development of the project. Blythe Valley Park is a significant strategic step forward in the continuing expansion of Liberty's UK development and asset management business
- Blythe Valley Park is a partnership with Solihull Metropolitan Borough Council
Kevin Grundy, Principal responsible for the UK market for Doughty Hanson & Co Real Estate, said, "We are pleased to expand our joint venture with Liberty Property Trust to include Blythe Valley Park, a premier business park with a strong presence in the Birmingham area. Blythe Valley Park offers an attractive mix of value enhancement opportunities and future development potential within an established, prominent location."
Andrew Blevins, Managing Director, Liberty Property Trust UK, said, "Opportunities such as Blythe Valley Park don't come around often. It made all the sense in the world to team up with Doughty Hanson once again and to leverage Liberty's business park expertise for the acquisition, management and future development of the park."
Fund II has committed to eight investments representing €262.3 million of equity or 44.5% of the Fund; the six investments completed to date are:
- a portfolio of 19 commercial buildings at Kings Hill, Kent;
- two residential development joint ventures in Italy - in Rome and in Brescia;
- a portfolio of six office buildings in the Kista sub-market of Stockholm;
- Howick Place, London SW1 in joint venture with Terrace Hill Group plc; and
- Blythe Valley Park.
Doughty Hanson & Co European Real Estate Fund II is targeting additional investment and development opportunities in France, the Germanic Region, Italy, the Nordic Region, Spain and the UK.
Source: College Hill
